Bank Indonesia (BI) reported the country' foreign exchange reserves lowered to US$133.7 billion in October from September stood at $135.2 billion - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! In the face of constant selling pressure, many investors are hoping the Federal Reserves will ride to the rescue or do some jawboning to boost hopes of easing as early as March. The coronavirus outbreak has give deep impact to the global market.

Stock markets across the world have lost US$3.3 trillion of value in four days of trading, as measured by the MSCI all-country index. United States (US) stock market posted its longest losing streak since August as investors passed a series of reports of a widespread the virus.

Yesterday, number of new COVID-19 infections inside China overtaken by fresh cases elsewhere, with Italy and Iran emerging as new epicenters of the rapidly spreading illness. Asia reported hundreds of new cases, Brazil confirmed Latin America’ first infection and the new disease was also detected for the first time in Pakistan, Sweden, Norway, Greece, Romania and Algeria.

The virus that can lead to pneumonia has infected about 80,000 people and killed more than 2,700, the vast majority in China. The World Health Organization said China had reported 412 new cases on Tuesday, while there were 459 in 37 other countries.

In Japan, Prime Minister Shinzo Abe called for sports and cultural events to be scrapped or curtailed for two weeks to stem the virus as concern mounted for the 2020 Tokyo Olympics. Nearly 170 cases besides the 691 linked to the Diamond Princess cruise ship that was quarantined off its coast this month in his country.

On Wednesday, the Asian Development Bank (ADB) said it has raised Rs850 crore (US$119 million) from a new issue of offshore Indian rupee-linked 10-year bonds. The bonds bear a semi-annual coupon of 6.15 per cent and priced to yield 6.19 per cent and settled in US dollars were underwritten by JP Morgan.

In Indonesia, President Joko Widodo in the process to finalize the candidate names who will be nominated as the head authority of the new capital, which will serve on a ministerial-level position. There are three strongest candidates, namely research and Trechnology minister Bambang Brodjonegoro, chairman of state oil and gas firm PT Pertamina Basuki Tjahaja Purnama and deputy state own enterprises minister Budi Gunadi Sadikin.

On the cabinet reshuffle issues, the head of state denied recent rumors that he was planning to run the plans. The issue about a cabinet reshuffle was first raised by his volunteer a the 2014 and 2019 presidential election. The President was considering to remove cabinet ministers who showed poor performances.

While, finance minister Sri Mulyani Indrawati said the launching of the pre-employment card program that was initially planned for mid-2020, will be expedited in March as part of the efforts to suppress the coronavirus impact on the country’ economy. The government allocated a budget of Rp10 trillion ($714.28 million) to facilitate vocational training for two million unemployed citizens.

She hoped that the program could help boost Indonesia’ economy in the first quarter of 2020. While, coordinating minister for economic affairs, Airlangga Hartarto said that the card program was designed as the solution for seven million Indonesian people who are still seeking for jobs. The recipients would receive pocket money of Rp500,000 per month.

On Wednesday, Indonesian Rupiah was still parked in the red zone to its lowest level in the last seven weeks. The rupiah closed at 13,940 per US dollar or corrected by 0.38 percent and the Jakarta Composite Index (JCI) closed down 1.7 percent compared to prior day.

The local currency weakening was the third-worst performing currency among Asian currencies, below the Korean Won and Thai Baht, which fell 0.52 percent and 0.4 percent respectively. During 2020, the rupiah has corrected 0.53 percent.

Some analysts rated that the Rupiah failed to capitalize on the weakening momentum in oil prices because the coronavirus outbreak issue raised fears of an economic slowdown. In addition, there is foreign funds outflow worth of Rp1.75 trillion, which became a negative catalyst to the market.

Beside, US’ 10-year bond tenor fell to a record low of 1.307 percent amid growing concern the potential impact on global growth from COVID-19. Based on various data, they rated the exchange rate will continue to weaken in the range of 13,850 to 14,000 a US dollar and the JCI between 5,623 – 5,650.

The stocks to be watch for today are PT Semen Indonesia Tbk (IDX: SMGR), PT United Tractors Tbk (IDX: UNTR), PT Indotambang Megahraya Tbk (IDX: ITMG), PT Bank Central Asia Tbk (IDX: BBCA), PT Chandra Asri Petrochemical Tbk (IDX: TPIA), PT Astra International Tbk (IDX: ASII), PT Telkom Indonesia Tbk (IDX: TLKM), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), and PT Sumarecon Agung Tbk (IDX: SMRA).

US$1: Rs71.67, Rp14,000

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia